MOL, Vopak JV to own and operate FSRU for Hong Kong LNG terminal

This new Hong Kong-based joint venture company will own the world’s largest FSRU – MOL’s 263,000m³ FSRU Challenger (whose name will be changed to Bauhinia Spirit) and have a long-term contract with Hong Kong LNG Terminal. The joint venture will cover the FSRU as well as jetty operations and maintenance and port services.
The offshore jetty platform for the mooring of the FSRU and LNG carriers are owned by Hong Kong LNG Terminal which is currently under construction and is expected to be operational around mid-2022.
The planned 4-mta LNG import terminal will use FSRU Challenger to supply Lamma power plant and Black Point, a power plant operated by China Light and Power Company in Hong Kong, via subsea pipelines. Shell will supply LNG as part of a long-term deal.
Hong Kong LNG Terminal Limited is a joint venture between the city’s utility companies Castle Peak Power Company Limited (CAPCO) and HK Electric.

The terminal will be located offshore about 25 km southwest of Hong Kong Island and provide natural gas feedstock to the customer’s dedicated power plants as part of an overall plan to improve air quality and facilitate the city of Hong Kong’s fuel transition from coal to gas.
MOL President & CEO Takeshi Hashimoto said “An ideal complementary relationship works by combining Vopak’s many years of experience as a terminal operator for oils, chemicals and liquefied gas with MOL’s know-how of LNG carrier and FSRU operation. MOL looks forward to further working with Vopak on this promising project and feels confident that with our joint forces, we will be able to establish a safe and reliable operation structure for the Hong Kong FSRU project.”
Eelco Hoekstra, Chairman of the Executive Board & CEO of Royal Vopak, added the company is looking to actively contribute to Hong Kong’s energy transition.
“This cooperation gives Vopak an excellent entry in the growing LNG market in Hong Kong and fits our ambition to diversify our service offering in LNG by investing in FSRUs” he said.
MOL had earlier detailed an agreement with Vopak for jetty support. Based on these joint initiatives, the companies are aiming to explore further downstream opportunities for bunkering LNG in Hong Kong, which is one of the major bunkering ports of fuel oils for marine transportation.